West Texas Intermediate crude tumbled after payroll data showed fewer jobs were added in March than expected in the U.S., the world’s largest oil user.
Government figures showed employers in the U.S. hired 88,000 workers last month, fewer than 190,000 estimated by analysts in a Bloomberg survey.
“Bearish nonfarm payroll prompted another round of sell-off both in WTI and Brent,” said Myrto Sokou, an analyst at Sucden Financial Ltd. in London. “There has been a clear downturn in the market since April 2, so it seems like the market was already ready for correction lower.”
WTI for May delivery fell as much as $1.35, or 1.5 percent, to $91.91 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $92.55 at 9:01 a.m. New York time. Brent crude also fell in London, as much as $1.42, or 1.3%, to $104.92 a barrel.
Brent may recover from the recent sell-off of the past few days as global inventories will remain low and economic growth picks up in the second half of the year, Goldman Sachs Group Inc. said in an April 4 report. The bank maintained its second-quarter price projection at $110 a barrel.
Talks on Iran’s nuclear program began today in Almaty, Kazakhstan.